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So what I can see on the 4H timeframe of the EURAUD is a starting of a possible downtrend as seen from the downward trend line. However, there is also a strong support level at the 1.7845 level. If
price breaks this strong support level, what i think will happen is a retracement back to the same level and a downward movement from there.
Optimum entry level would be at 1.7845 when the retracement happens. A second confirmation can be a bearish candle printing on the charts at that strong support level. Stop losses will be at least 10 pips above the previous high at around 1.8094 level. Nearest take profit levels would be at 1.71801. For higher risk to rewards ratio, you can choose to trail your stop losses to the next pullback.
Current Risk to Rewards Ratio is 1:2.86 which is very optimal, however, do take note that not all trades will be winning trades. Remember to always only risk a maximum of 2% of your account if you want to stay in the game for long.
Helpful tip: even though the analysis is on the 4H timeframe, entries should be taken at the 1H or lower time frames to catch the optimum entry.
If you have success with this analysis, please do leave a comment to let me know.
Have a great week trading.
This is not financial advice nor am I asking you to do what I say. This is merely my ideas and technical analysis that I would be following per my strategy. If you want to find out more, do drop a comment. Cheers.
So what I can see on the 4H timeframe of the EURAUD is a starting of a possible downtrend as seen from the downward trend line. However, there is also a strong support level at the 1.7845 level. If
price breaks this strong support level, what i think will happen is a retracement back to the same level and a downward movement from there.
Optimum entry level would be at 1.7845 when the retracement happens. A second confirmation can be a bearish candle printing on the charts at that strong support level. Stop losses will be at least 10 pips above the previous high at around 1.8094 level. Nearest take profit levels would be at 1.71801. For higher risk to rewards ratio, you can choose to trail your stop losses to the next pullback.
Current Risk to Rewards Ratio is 1:2.86 which is very optimal, however, do take note that not all trades will be winning trades. Remember to always only risk a maximum of 2% of your account if you want to stay in the game for long.
Helpful tip: even though the analysis is on the 4H timeframe, entries should be taken at the 1H or lower time frames to catch the optimum entry.
If you have success with this analysis, please do leave a comment to let me know.
Have a great week trading.
This is not financial advice nor am I asking you to do what I say. This is merely my ideas and technical analysis that I would be following per my strategy. If you want to find out more, do drop a comment. Cheers.